R&E TRANSPORT, INC. V.

LATAG, 422 SCRA 698 (2004)

FACTS:

Latag, employee of LMT, was transferred to R&E when LMT ceased operations. He fell ill but
upon recovery was refused to return to work due to old age. Latag demanded retirement pay.
Petitioners agree he is entitled but contend the number of years to be credited in computing
benefits. The LA claimed his 23 years with LMT must be added to his 14 years with R&E.

ISSUE: W/N to consider LMT and R&E a single entity for computing retirement pay.

HELD: No. Piercing the corporate veil should be done with caution. The element of control is not
mere stock control, but complete domination of finances and policy/business practice.
Respondent has not shown competent evidence that one company had stock control and
complete domination over the other.